The IS Curve Shifts to the Left When

question 25

Multiple Choice

The IS curve shifts to the left when

• A)taxes increase.
• B)government spending increases.
• C)the money supply increases.
• D)autonomous planned investment spending increases.

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Definitions:

Credit Card Interest

The cost of borrowing money on a credit card, calculated as a rate of the total amount of unpaid card balance.

Usury Law

Usury Law refers to regulations governing the amount of interest that can be charged on a loan, intended to protect borrowers from excessive and unfair interest rates.

Interest Rate

The cost of borrowing money or the return on saving, expressed as a percentage of the principal amount per period.

Elastic

A characteristic of a good or service that describes its responsiveness to changes in price; highly sensitive to price changes.